Down to the wire on Terrorism Risk Insurance renewal
As the congressional session winds down things are at an impasse ... there's one pending piece of business of great importance to the insurance industry: renewal of the Terrorism Risk Insurance Act. If there is no agreement, the effects could be far-reaching - for example, nonrenwal even poses a threat to Super Bowl XLIX. Robert Hartwig of the Insurance Information Institute talks about other Economic and Insurance Implications of TRIPRA’s Non-Renewal.
Renewal is a particularly big issue for workers' comp because it is a coverage required by law. The effects of the impasse are already being felt:
“The question of what happens if the federal Terrorism Risk Insurance Program Reauthorization Act is not renewed by Congress is no longer a theoretical one,” wrote Robert Hartwig, president of the Insurance Information Institute. “Since insurance policies negotiated during 2014 extend beyond the imminent December 31 expiration date of the program, the negative consequences of non-renewal are already being experienced by businesses across America and their insurers.”
It's a real nail biter. Yesterday, talks broke down:
Talks to resolve an impasse over the Terrorism Risk Insurance Act have broken down as House Financial Services Chairman Jeb Hensarling (R-Texas) insists on changes to Dodd-Frank, a 2010 banking regulatory law. New York Sen. Chuck Schumer, the chief Democratic negotiator, is resisting those revisions.
Now, House Republicans will send the TRIA extension with changes to Dodd-Frank as a standalone bill. If the Senate and House had found agreement, it would’ve been wrapped into the must-pass funding bill to keep the federal government open past Thursday.
Some legislators suggest a short-term patch, but that doesn't provide a lot of security to insurers who need to be making coverage decisions now.